Summer Internship Project Report On

Analyze costumer buying behaviour of HITACHI with it’s

competitiors

Prepared By: - Ansuman Nayak

Regd No-2206298039

(MBA 2022-24)

Under The Guidance of: -

Internal Guide External Guide

Prof. Samir Ranjan Panda, (OSD) Mr. Sunil Patra

Department Of MBA ,GIFT (Office Manager)

GANDHI INSTITUTE FOR TECHNOLOGY (AUTONOMOUS), BHUBANESWAR.

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 DECLARATION

I hereby declare that the Summer Training Report entitle “analyse costumer buying
behaviour of HITACHI with it’s competitiors” is an authentic record of my own
work as requirements of 8 weeks Summer Training during the period from June to
August for the award of degree of MBA (Master of Business Administration, Gandi
Institute of Technology, Bhubaneswar under the guidance of (OSD) Prof Samir
Ranjan Panda.

Date Signature of student

Name of Student Roll

No.

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 COMPANY CERTIFICATE

This is to certify that Mr. Ansuman Nayak has carried out his Summer Internship
Project in partial fulfilment of the requirement for the degree of Master of Business
Administration on the topic “Analyze costumer buying behaviour of HITACHI with it’s
competitiors” during June 2023 to August 2023. This thesis is supported by HITACHI,
Bhubaneswar,Odisha.
Date: 21th August 2023

Internal Supervisor External Supervisor

Prof. Samir Ranjan Panda Mr. Sunil Patra
OSD Project Executive
GIFT Autonomous College HITACHI, Bhubaneswar

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iv
 ACKNOWLEDGEMENTS

I take this opportunity, to acknowledge some of the people, who have made a major
contribution to the development of this project.

I am especially very grateful to Mr. PRANAB DAS, HR Manager Hitachi Ltd. for
the guidance, inspiration, motivation and encouragement, he provided during the
course of the project study. He has always been nice and patient enough, to listen
to the queries and solving them, in spite of a very busy schedule.

I am also indebted to Mr. Soumya Ranjan Mohanty , Store Manager, Patra

Electronics, for the reviews, suggestions and support, he extended whenever it was
required. This project could not been completed, without the assistance of all the
other staff members in the organization, who helped me in familiarizing with the
organization and assisted me through their experiences and information required
during the project.

I would like to express my sincere thanks to SAMIR RANJAN PANDA (Faculty,

GIFT , AUTONOMOUS ), my project guide, for his valuable support. He gave me
the opportunity to do this project; his timely guidance helped me, and making this
project, what it has come out to be.

My humble thanks to my family members, colleagues and last but not the least the
Placement Cell of GANDHI INSTITUTE FOR TECHNOLOGY, BBSR.

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 TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION & COMPANY PROFILE .................................................................................. 3

1.1 INTRODUCTION ..................................................................................................................................... 4

1.1.1 HISTORY OF AIR CONDITIONERS ................................................................................................ 4

1.1.2 INTRODUCTION OF AIR CONDITIONER ...................................................................................... 5

Consumers’ profile: Air conditioners ........................................................................................................... 7

1.1.3 ANALYSIS OF AIR CONDITIONER INDUSTRY ............................................................................ 7

Political environment: .................................................................................................................................. 7

Economic environment: ............................................................................................................................... 8

Social environment: ..................................................................................................................................... 8

Technological environment: ......................................................................................................................... 8

1.1.4 SWOT ANALYSIS ........................................................................................................................... 10

Strengths: .................................................................................................................................................. 10

Weakness: ................................................................................................................................................. 10

Opportunity: .............................................................................................................................................. 10

Threats: ..................................................................................................................................................... 10

As a Student Promoter, we have certain responsibilities in our assigned job and the responsibilities are ..... 10

CHAPTER 2: JOB DESCRIPTION ................................................................................................................... 11

JOB REQUIREMENTS OF SALES PERSON: ............................................................................................. 12

2.1 JOB DUTIES AND TASKS .................................................................................................................... 12

2.2 JOB ACTIVITIES ................................................................................................................................... 13

2.3 JOB SKILLS ........................................................................................................................................... 14

2.4 JOB ABILITIES ............................................................................................................................... 15

2.4.1 JOB KNOWLEDGE, EXPERIENCE, EDUCATION ........................................................................ 15

2.5 JOB DESCRIPTION AT HITACHI ......................................................................................................... 16

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 Week2: ...................................................................................................................................................... 16
CHAPTER 3: ANALYSIS OF JOB DONE
.......................................................................................................... 18

3.1 AIR CONDITIONERS...................................................................................................................... 19

CHAPTER 4: LEARNING OUTCOMES ........................................................................................................... 32

LEARNING OUTCOMES ............................................................................................................................ 33

CHAPTER: 5 RECOMMENDATIONS & FINDINGS ........................................................................................ 34

5.1 FINDINGS .............................................................................................................................................. 35

5.2 RECOMMENDATIONS ......................................................................................................................... 36

LIMITATIONS & CONCLUSIONS .................................................................................................................. 37

LIMITATIONS ............................................................................................................................................. 38

CONCLUSION ............................................................................................................................................. 39

ANNEXURE..................................................................................................................................................... 40

………………………………………............................................................................................................. 41

Gender ....................................................................................................................................................... 41

Which brand do you prefer in terms of buying an air conditioner? .............................................................. 41

What is your preferable price range? .......................................................................................................... 41

Which type of AC you prefer to buy? ......................................................................................................... 41

What capacity of AC do you prefer? .......................................................................................................... 42

How do you place an order? ....................................................................................................................... 42

What is the key factor you look first while buying an AC? ......................................................................... 42

How would you rate your brand compared to its nearest competitors on basis of performance? ...................
42

What value added services does your brand gives? ..................................................................................... 43

Does your brand give EMI option while buying an AC? ............................................................................. 43

Does your brand give any extended warranty options? ............................................................................... 43

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 EXECUTIVE SUMMARY

In partial fulfillment of requirement of Master of Business Administration, a

summer internship of 8 weeks is required to be undertakes at an organization.
Because of this requirement, I undertook an “On-the-Job” internship on
“Comparative Analysis of Customer buys Behavior of Hitachi with Its Competitors”
during June - July 2023.

Hitachi, Ltd. is a Japanese multinational engineering an electronics conglomerate

company headquartered in Chiyoda, Tokyo, Japan. Hitachi is a highly diversified
company that operates eleven business segments: Information &
Telecommunication Systems, Social Infrastructure, High Functional Materials &
Components, Financial Services, Power Systems, Electronic Systems &
Equipment, Automotive Systems, Railway & Urban Systems, Digital Media &
Consumer Products, Construction Machinery and Other Components & Systems.

The main objective of this study was to better understand the policies and procedures
of Hitachi, an attempt has been made to gain an insight into the air conditioner and
refrigerator industry, to study various parameters involved in the air conditioners and
refrigerator, to study retailers’ and customer perception about various parameters
like price, brand image, after sales service etc.

This project has been carrying out in three phases. In the first phase, in an attempt to
gain insight into the air conditioning and refrigerator industry as to how it works,
what all-competing brands are there, this study gave a fairly good idea about the
industry and the perception of retailers towards different brands. This study helped
to identify various parameters involved in the air conditioner.

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 A good amount of qualitative information is gathering from this study. In the second
phase, gathered a good idea of sales and customers behaviors in the retail outlets.
Some part of my project also included handling customer’s calls, stock handling,
demonstrations and installations booking. In the third phase, a structured
questionnaire was been generated to find out the brand awareness of the customer
and their most preferred brands in those two particular segments and along with their
buying behavior, which was also a part of the study

The major findings that emerged from the analysis were that Hitachi ranked second
when it comes to brand preference in air Conditioners but ranks lower in after sales
services. In addition, price, quality and brand image emerged out as significant factors
for air Conditioner and refrigerator purchase. Most the customers who prefer Hitachi,
they are mostly premium customers. Customers prefer Hitachi as a brand because
Hitachi gives some value addition in retail selling compared to its competitors.

Based on above findings it can be conclude that Hitachi has improved in brand
awareness among retailers and customers but it is yet to surpass Voltas in the
competitive market. Also, sales team visits, ordering and after sales are a matter of
concern that can cause great loss to the company in future, if not corrected. The
actions recommended broadly include strengthening distribution network.
Improving incentives to sales forces and strengthening retail network of Hitachi.

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CHAPTER 1: INTRODUCTION &
COMPANY PROFILE

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 1.1 INTRODUCTION

Today Indian consumers are not limited to a set of needs. Products are today customized keeping
in mind various consumer’s likes and dislikes. The consumer durables industry, which mainly
comprises home appliances, is highly influenced by the prospect in order to produce the right
product for the customer. Previously air conditioners were not perceives as white goods due to
large price difference between air conditioners and other white goods. Now, thanks to
Liberalization and growing technology, the air conditioner market a decade back and that of today
are entirely different.

Be it price or technology, consumer demand has seen a sea change. Today buyer has plenty of
options to choose from and different companies are trying their best in luring the customer. This
is mainly due to entry of foreign players after globalization.

Air conditioner purchase involves a high involvement decision; customers thought a lot before
buying a new ac as investment are comparatively higher as compared to say FMCG. This even
complicates the task of various companies involved in ac business. Last but not the least, since
technological differences between brands of similar price range are not significant, marketing is
the only tool left for competitive advantage.

1.1.1 HISTORY OF AIR CONDITIONERS

On July17, 1902, Willis Havilland Carrier installed the first air conditioner at a printing press at
Brooklyn N.Y. It was not to help the workers at factory though. It was to keep paper cool and dry
so it would not curl in the mid-summer heat and humidity. That way, the printing press could apply
the ink properly. Mr. Carrier started a revolution by doing that. Air conditioning allowed cities to
develop in deserts. It changed the designs of houses and skyscrapers.

It took pioneering genius of Willis Carrier to work out the basic principal of cooling and humidity
control and it took innovation by thousands of engineers before air conditioners became a real
benefit to average person.
Carrier’s invention made many technologies possible, especially in fields that required highly
controllable environment such as medical and scientific research, product testing etc. Carrier

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claimed that while he was standing in a Pittsburgh train in 1902, he realized that saturating it with
chilled water to induce condensation could dry air.

Willis Carrier is known as the father of air conditioners. In 1928, Carrier developed first residential
“Weatherman”, an AC unit for private houses.

1.1.2 INTRODUCTION OF AIR CONDITIONER

Air conditioning is the conditioning of air within a defined space, usually a residence or a place of
business. Conditioning usually involves heating or cooling, humidifying or dehumidifying, and
filtering or cleaning air. In a central air conditioner, the system cools and dehumidifies the defined
space. Heating is accomplished by an add-on to the system (such as an electric heat strip) or by a
separate unit, such as a furnace.

There are four basic air conditioner types: window units, through-the-wall units, portable units and
completely house/central air units. Window units come in models made for double-hung windows,
sliding windows and casement windows. Through-the-wall and central air units require
professional installation. Portable units are not typically as effective as window air conditioners
and are best used only in situations where fitting into a window is not an option.

Window air conditioners are very simple appliances. They operate on the exact same principles as
a refrigerator, freezer, or dehumidifier.

Cooling: All residential window air conditioners have a cooling system made up of four primary
components, a compressor, an evaporator, a metering device, and a condenser. Air conditioner
cooling systems are better understands if you think of them as devices that remove warmth from
the air rather than cooling the air.
Blower fan: When the unit is running, the circulating fan and compressor are running
simultaneously. The fan motor has two fan blades attached to it on either end. The fan blade on
the inside part of the unit continually draws room air over the evaporator coils, which are cold.
The fan blade on the outside part of the unit continually draws fresh outside air over the condenser
coils, which are warm. Because the evaporator coils are cold, they cause moisture in the room to

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collect on them, much like a cup of ice water on a warm, humid day. When the amount of moisture
increases, it begins to drip down off the coils into the bottom pan of the air conditioner.

Thermostat Control: The thermostat on a window air conditioner works by sensing the air
temperature entering the air conditioner. As the air, entering the unit reaches the set temperature it
will cause the compressor to turn off. The blower may continue to run depending on the selection
chosen on the control panel. Digital thermostats work on a similar principle but display a more
precise temperature.

Selector switches: The air conditioner selector switches allow the user to choose the fan speed.
The compressor always runs at the same speed regardless of the settings. If low cool is, choose,
for example, the fan runs at a slower speed but the compressor still offers the same cooling capacity

Central air conditioners are split systems: an outdoor unit (the condenser unit) and an indoor unit
(air handler). The function of an air conditioner is to transport heat from one station to another.
The vehicle your system uses to carry the heat is calls a refrigerant, commonly referred to as Freon.
The compressor in outdoor unit changes the refrigerant (or "Freon") into a high temperature, high
pressure gas. As that gas flows through the outdoor coil, it loses heat and condenses into a high
temperature, high pressure liquid. This liquid refrigerant travels through copper tubing into the
evaporator coil. There the refrigerant expands. Its sudden expansion turns the refrigerant into a
low temperature, low-pressure gas. This gas then absorbs heat from the air circulating in the
ductwork. The cooled air is then distributes back through your house or place of business.
Meanwhile, the heat absorbed by the refrigerant is carries back outside through copper tubing and
released into the outside air.
Consumers’ profile: Air conditioners

The room air conditioners can be divides into two categories

1. Window air conditioners

2. Split air conditioners

Consumers for room air conditioners can be divides as

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 A. Household consumers: If any segment of consumer durables industry has seen rapid growth
in India in last decade, it is room air conditioners industry. With growing incomes and higher
standards of living, the demand for air conditioners has been rising in household segment. The
consumer profile is upwardly mobile urban population living in metropolitans and cities. The
household market accounts for 40 % of the window A.C. market and 60 % of the split A.C. market.

B. Industry Consumers: Government sector has been a major buyer of air conditioners in past
but demand from household sector is also increasing. A sustained GDP growth, increased
government spending and industrial activity, cheaper consumer credit etc. are driving the demand
for AC products in industrial sector.

1.1.3 ANALYSIS OF AIR CONDITIONER INDUSTRY

AC industry is operating in an environment, which has changed a lot during last few years. Industry
operates in a dynamic and complex environment. Complex, because there are numerous factors
affecting the business like government budgetary policies, eco friendliness of operation and
product part, changing lifestyles of consumers, demographics etc. On the other hand, it is dynamic
because due to rapid changes in technological front and aspects related to environment are
changing.
Political environment:

 Liberalization of economy in nineties saw the entry of a number of foreign player  Fair
amount of political stability.
 Consensus on target of higher growth of economy.
 Political consensus on economic reforms.
Economic environment:

 Abatement from retail price for levy of excise duty on air conditioners lowered from 35 to
30%
 Increase in excise duty of raw materials like steel from 12% to 16% will adversely affect
air conditioner manufacturers.
 With lowering of duties on newer product categories, air conditioners are now position as
a retail product. Earlier with retail price of nearly 40,000, it stood no chance against say a
CTV costing Rs15, 000.

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  Industry has been seasonal in nature with four months (June to July) generally accounting
for 60-65% of total annual sales.
Social environment:

 Rising disposable income and reducing prices are slowly making ACs a necessary utility
as opposed to being view as a luxury item.
 Increased spending on lifestyle related products and the increasing SOHO segment are
increasing the demand for ACs.
 Increasing concern for environment and health consciousness will make people buy more
eco-friendly products.
Technological environment:

Product technology: The key component of air conditioners, compressor (30% of cost) is of two
types i.e. reciprocating and rotary. Rotary compressors accounting for 66% of the total market
Split ACs are major users of rotary compressors now dominate the Indian Ac market.
Rotary compressor has the advantage of being energy efficient, less noisy and abuse proof India
has two manufacturers, Tecumseh India and Kirloskar Copeland for reciprocating compressors.

Rotary compressors are presently imports from China, Malaysia, Japan and Thailand. Window
ACs range from 0.6T to 2T. They are ideal for small space like individual rooms in an office or
residence. Split Air Conditioners have good aesthetic features and indispensable in rooms without
windows.
Process technology: The industry intrinsically is highly capital intensive and has massive appetite
for capital cost as well as working capital while a normal 0.1-0.15 Million assembly plant costs
500 Million (without compressor line), working capital cycle is 90 days. With high operating costs
(around 800-1000), technology especially on power savings is a key advantage and market
differentiator.

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 FIGURE 1: MARKET SHARE OF SPLIT AC VS WINDOW AC IN INDIA
70

60

50

40

30

20

10

0
1 Star 2 Star 3 Star 4 Star 5 Star

Window Split type

1.1.4 SWOT ANALYSIS

Strengths:

1. Diversified product portfolio and balanced revenue streams.

2. Strong focuses on research and development.
3. Strategic acquisitions to strengthen market position.
4. Good Focus on sustainability and marketing.
5. Excellent global presence and top of the mind recall.

Weakness:

1. Over dependent on Japanese economy for revenue generation.

2. Due to intense competition and changing customer preference, market share is limited.
3. No promotion undertakes to target the lower class of the society.
4. Poor after sales service- very few service centers in India.
Opportunity:

1. Growth in Air conditioners, Refrigerators, LED, Washing machine markets.

2. Acquisition of smaller brand and global tie-ups to increase reach.

Threats:

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 1. Rapid technological changes and evolving industry standards.
2. Stringent government regulations.
3. Fluctuations of exchange rate.

As a Student Promoter, we have certain responsibilities in our assigned job and the
responsibilities are
 Understand customer requirement on the Product.
 Actively demonstrate Hitachi Products.
 Handle Customer queries related to Products/Pricing/Schemes etc.
 Deliver the desired shopper experience to the consumer.
 Convert customer requirement into demand, hence sales conversion

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CHAPTER 2: JOB DESCRIPTION

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 JOB REQUIREMENTS OF SALES PERSON:

In home appliances, sales person performs face-to-face sales and customer service at a retail store.
She/he is responsible to provide each new and returning customer with all information needed to
make an educated purchasing decision. An air conditioner/refrigerator sales professional usually
reports to the store manager of that particular store. As a technical promoter, the person should
have a sound knowledge about the technologies that has been use in the air conditioner and
refrigerator. Therefore, as a student promoter who has a zeal for latest technologies in air
conditioner and refrigerator segment, we are supposed to have a clear-cut knowledge about the
technologies that has been use by the Hitachi’s differentiators.

2.1 JOB DUTIES AND TASKS

1) Demonstrate and explain products, methods, or services in order to persuade customers to
purchase products or utilize services.

2) Identify interested and qualified customers in order to provide them with additional
information.

3) Keep areas neat while working, and return items to correct locations following

demonstrations. 4) Practice demonstrations to ensure that they will run smoothly.

5) Prepare and alter presentation contents to target specific audiences.

6) To be capable in Story-Telling and to identify key differences of competitor's claim.

7) Provide product samples, coupons, informational brochures, and other incentives to persuade
people to buy products.

8) Record and report demonstration-related information such as the number of questions asked by
the audience.

9) Sell products being promote, and keep records of sales.

10) Set up and arrange displays and demonstration areas to attract the attention of prospective
customers.

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 11) Wear costumes or signboards and walk in public to promote merchandise, services, or events.

12) Work as part of a team of demonstrators to accommodate large crowds.

13) Suggest specific product purchases to meet customers' needs.

14) Instruct customers in alteration of products.

15) Learn about competitors' products and consumers' interests and concerns in order to

answer questions and provide more complete information. 16) Recommend product or

service improvements to employers.

17) Fully be aware of Target and track weekly achievement Vs. Target in both Unit and Amount.

18) Work with customers to present them the benefits and competitive advantage of products.

2.2 JOB ACTIVITIES

1) Performing for or Working Directly with the Public -- Performing for people or dealing
directly with the public. This includes the Retail Sailing Solutions:

 Build Relationship
 Connect
 Explore
 Create Experience
 Close

2) Selling or Influencing Others -- Convincing others to buy merchandise/goods or to otherwise

change their minds or actions.

3) Communicate with Persons outside Organization -- Communicating with people outside the
organization, representing the organization to customers, the public, government, and other
external sources. This information can be exchange in person, in writing, or by telephone or e-
mail.

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4) Establishing and Maintaining Interpersonal Relationships -- Developing constructive and
cooperative working relationships with others, and maintaining them over time.

5) Interpreting the Meaning of Information for Others -- Translating or explaining what

information means and how it can be uses.

6) Organizing, Planning, and Prioritizing Work -- Developing specific goals and plans to
prioritize, organize, and accomplish your work.

7) Handling and Moving Objects -- Using hands and arms in handling, installing, positioning,
and moving materials, and manipulating things.

2.3 JOB SKILLS

1) Speaking -- Talking to others to convey information effectively.
2) Persuasion -- Persuading others to changes their minds or behavior.
3) Active Listening -- Giving full attention to what other people are saying, taking time to
understand the points being made, asking questions as appropriate, and not interrupting at
inappropriate times.
4) Social Perceptiveness -- Being aware of others' reaction and understand why they react as they
do.
5) Instructing -- Teaching others how to do something.
6) Critical Thinking -- Using logic and reasoning to identify the strengths and weaknesses of
alternative solutions, conclusions or approaches to problems.
7) Active Learning -- Understanding the implications of new information for both current and
future problem-solving and decision-making.
8) Learning Strategies -- Selecting and using training and instructional method and procedure
appropriate for the situation when learning or teaching new things.
9) Complex Problem Solving-- Identifying complex problems and review relates information to
develop and evaluate options and implement solutions.
10) Service Orientation -- Actively looking for ways to helps customers.
2.4 JOB ABILITIES
1) Speech Clarity -- The ability to speak clear, so others can understands you.

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2) Oral Expression -- The ability to communicate information and ideas in speaking so others will
understand.

3) Oral Comprehension -- The ability to listen to and understand information and ideas presented
through spoken words and sentences.

2.4.1 JOB KNOWLEDGE, EXPERIENCE, EDUCATION

1) Sales and Marketing -- Knowledge of principles and methods for showing, promoting, and
selling products or services. This includes marketing strategy and tactics, product demonstration,
sales techniques, and sales control systems.

2) English Language -- Knowledge of the structure and content of the English language
including the meaning and spelling of words, rules of composition, and grammar. Knowledge of
the National language “Hind”& other regional languages can also be helpful for promotion and
selling of the product.

3) Education and Training -- Knowledge of principles and methods for curriculum and training
design, teaching and instruction for individuals and groups, and the measurement of training
effects.

4) Communication and Media-- Knowledge of media production, communication, and

dissemination techniques and methods. This includes alternative ways to inform and entertain via
written, oral, and visual media.
2.5 JOB DESCRIPTION AT HITACHI
Pre SIP Induction:

Before going to the job, the student promoters were given training for 1 days regarding the
specifications of each and every air conditioners and refrigerators of Hitachi. The trainer was an
experienced trainer from Hitachi India Pvt. Ltd. who also made us to perform role-plays to have a
better understanding of the roles & responsibilities of a promoter in a retail outlet. Week 1:

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On the job in very first week, my head promoter helped me to understand more about the Hitachi

products. He also taught me to how to give a demo to a customer. My senior helped me in selling

“Summer QC” window AC, as it was my 2 nd day in store. I sold 15 AC in 1st week.

Week2:

The sales in 2ndweek was not dramatically increase as on that particular week Hitachi launched
free installation skim with free stabilizer with Hitachi AC. And it really effected the sales of Hitachi
AC . I managed to sold 15 air conditioner only in the weekend and totally 25
AC in the 2ndweek including the model of window AC like “Summer TM”, “Summer QC”, “Kaze

plus” and split AC like “Ace cutout”, “Kaze plus”. Week 3:

In the 3rdweek, I changed the showroom as my HR ordered me. I was shift from “Raj Electronics”,
Adaarsh Nagar to “Patra Electronics”, Kalkaji. It was a “Hitachi Home”.
Therefore, products option of Hitachi was more than previous one. In Hitachi Home most of the
Hitachi products available. It was again a new learning for me. My responsibilities in Hitachi

Home were more than previous ones. Here, I took care of installation, customers complain and

stocks. The sales in 3rd week were not that good. I managed to sell 18 AC in that week. Week 4:

In 4thweek again sales was not good. However, in that week I sold one of Hitachi’s most upgrade

AC “Ace Followme” worth of Rs47500 and I sold a refrigerator i.e. “French Bottom Freezer
Series” worth of Rs59000.It was my first sale in case of Refrigerator. I was highly appreciated by
the Store Manager and the Head Promoter. This week I practically learnt how to manage under
uncertainty as I was handling 3 to 4 customers at a time. In 4th week, I managed to sell 15 air
conditioner and 1 refrigerator. Week 5:

From 5thweek, the sales again gradually started moving up. The demand became so high that even
our store was running out of stock in some of the models especially like “Ace cutout”, “Ace
inverter”, “Kampa”, “Kampa Inverter”, “Ace Reidan”. Therefore, we started taking advance
booking for those models so that we do not lose our potential customers. In that week, Hitachi
launched one of its upgrade models i.e. “Kaze Alpha” which was Hitachi’s only Display AC. So

16
demand of “Kaze Alpha” model growing dramatically. In that week I also managed, sold some
new model of AC like “Kampa”, “Kampa Inverter”, “Ace Inverter” and “Ace Reidan”. Week 6 &
Week 7:

From the 6th week, the sales never looked back and it continuously started moving up. Once again
I sold the two higher end refrigerator under “French Bottom Freezer series” that is R-
WB480PND2 & “Solfege series” that is R-SG37BPND. By this time, I was perfectly able to apply
the retail sailing solutions to each. This time I attended phone call and handled customer complain.
This was inspiring as because I was able to build customer relationship for my work place. During
the 7thweek, I was able to sell more than30 AC. Week 8:

As this was the last week of my summer internship program I started preparing my report based
on my experienced and potential learning from the entire 8 weeks. In the 8th week, I sold 8-air
conditioner and that made a grand more than 200 AC and10 Refrigerators in 8 weeks’ period.

17
CHAPTER 3: ANALYSIS OF JOB
DONE

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 ANALYSIS

3.1 AIR CONDITIONERS

TABLE 1: PREFERRED BRAND OF AIR CONDITIONER

Frequency Percent Valid Percent Cumulative Percent

Voltas 16 40.0 40.0 40.0

9 22.0 22.0 62.0

Hitachi

2 5.0 5.0 67.0

Samsung

LG 2 5.0 5.0 72.0

5 13.0 13.0 85.0333

Daikin

6 15.0 15.0 100.0

Others
40 100.0 100.0
Total

Preferred Brand
Others
15%
Daikin Voltas
13% 40%
LG
5%
Samsung Hitachi
5% 22%

FIGURE 3: PREFERRED BRAND OF AC

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This figure shows the strongest point of Voltas i.e. brand preference. Voltas scored a whopping
40% points when it came to brand preference.

The other two brands, which are faring well in terms of brand preference, are HITACHI (22.5%)
and O GENERAL (12.5%).Voltas has always stressed on aggressive marketing and have hefty
advertising budgets and now Voltas has its new game plan of Big Bang strategy. Hitachi high score
can be attributing to innovative advertisements and high-end technological features.

TABLE 2: PREFERRED PRICE RANGE WHILE BUYING AN AC

Frequency Percent Valid Percent Cumulative

Percent

Rs.15000-25000 6 15.0 15.0 15.0

Rs.25001-35000 19 47.0 47.0 62.0

Valid Rs.35001-45000 11 28.0 28.0 90.0

Rs.45001 and above 4 10.0 10.0 100.0

Total 40 100.0 100.0

Preferred Price Range

Rs.15000-25000 Rs.25001-35000 Rs.35001-45000 Rs.45001 and above

10%

15%
28%
47%

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 FIGURE 4: PREFERRED PRICE RANGE IN TERMS OF BUYING AN AC
Most of customer prefers Rs. 25001-35000.In these price ranges most of option available for
Voltas that is main reason customer are mainly prefer Voltas compare to other brands. In case of
Hitachi, price range is quite high compare to its competitors.

TABLE 3: TYPE OF AC PREFERRED

Frequency Percent Valid Percent Cumulative Percent

Window 18 45 45 100

Split 22 55 55 55

40 100.0 100.0
Total

Type of AC
FIGURE 5: PREFERRED TYPE OF AC

sales

split window

21
Mainly in Delhi customer are prefer window ac compare to split ac. In earlier days ratio of
window to split was quite high, but in current scenario people are also prefer split. This figure
shows that different of window AC (45%) and split AC (55 %) is not too high.
TABLE 4: PREFERRED CAPACITY OF AC

Frequency Percent Valid Percent Cumulative

Percent

Less than 1 ton 1 2.5 2.5 2.5

8 20.0 20.0 22.5

1.0 ton

1.2 ton 4 10.0 10.0 32.5

1.5 ton 22 55.0 55.0 87.5

5 12.5 12.5 100.0

2.0 ton
40 100.0 100.0
Total

Capacity of AC
Less than 1 ton 1.0 ton 1.2 ton 1.5 ton 2.0 ton
2%

13%
20%

10%
55%

FIGURE 6: PREFERRED CAPACITY OF AC

22
People of Delhi mainly prefer 1.5 tonnages AC because of room size. Customer gets most of the
products option in 1.5 tonnage class AC.
Tonnage Class Efficient in Square ft. area

Less than 1 ton Less than 100 square ft. area

1 ton Around 100 square ft. area

1.2 ton Around 120 square ft. area

1.5 ton Around 150-180 square ft. area

2.0ton Around 200 square ft. area

TABLE 5: KEY FACTORS CUSTOMERS LOOKS FIRST WHILE BUYING AN AC

Frequency Percent Valid Percent Cumulative

Percent

Features 9 22.5 22.5 22.5

Price 8 20.0 20.0 42.5

Design 6 15.0 15.0 57.5

Valid
4 10.0 10.0 67.5
Color

Service 13 32.5 32.5 100.0

23
 Total 40 100.0 100.0

Key Factors

Service Features
33% 22%

Price
20%

Color
Design
10%
15%

FIGURE 7: KEY FACTORS WHILE BUYING AN AC

This figure clearly suggests that people are more concern about service. People are mainly
looking for after sales service. Features and price are also two important issues while buying air
condoners.

24
TABLE 6: RELATIONSHIP BETWEEN GENDER AND KEY FACTORS WHILE BUYING
AN AC

Key factor Customers looks first while buying an Total

AC

Features Price Design Color Service

Gender Male 7 7 3 3 9 29

Female 2 1 3 1 4 11

Total 9 8 6 4 13 40

25
 10

6
Male
4
Female
2

0
Features Price Design Color Service

FIGURE 8: RELATIONSHIP BETWEEN GENDER AND KEY FACTORS WHILE BUYING

AN AC

TABLE 7: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS

PERFORMANCE

Rate of customer preferable brand compared to its

nearest competitors on basis of performance

Poor Satisfactory Good

Voltas 1 11 4

Hitachi 0 6 3

Samsung 0 1 1
Preferred Brand
LG 0 2 0

Daikin 0 3 1

Others 2 4 0

Total 3 27 9

26
H Rate of customer Total
preferable brand
compared to its nearest
competitors on basis of
performance

Excellent

Voltas 0 16

Hitachi 0 9

Samsung 0 2
Preferred Brand
0 2
LG

Daikin 1 5

Others 0 6

Total 1 40

12

10

8
Poor
6 Satisfactory
Good
4 Excellent

0
Voltas Hitachi Samsung LG Daikin Others

27
 FIGURE 9: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS
PERFORMANCE

Performance level of Hitachi is good compare to its competitors. Customers are mainly prefers
Hitachi as a brand because of performance. Performance of O General is also good compare to
its competitors. Chi square value .309>.05, so there is no significant relation between preferable
brand and performance rate of that brand.
TABLE 8: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS VALUE
ADDED SERVICES

Value added services

Services Product option Price range Extra features

Voltas 2 2 11 1

Hitachi 0 0 4 5

Samsung 0 1 1 0
Preferred brand
0 1 1 0
LG

Daikin 0 0 2 3

Others 0 1 5 0

Total 2 5 24 9

28
 12

10

8
Services
6 Product option
4 Price range
2 Extra features

0
Voltas Hitachi Samsung LG Daikin Others

FIGURE 10: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS

VALUE ADDED SERVICES

Here customers been asked to rate the brands in terms of features or technology. As is very clear,
Hitachi is enjoying a clear sweep as far as this parameter is concerned. There is no significant
difference among the scores of other brands. That is why Hitachi is consider for income group
Rs.20000-30000 and is a high product with features like auto climate and digi-logic. It can easily
make out from this figure that product features are not an order winner today.

Barring Hitachi, they are more or less same. As far as Samsung and L.G. scoring above Voltas,
are concern it can be attribute to more spending on advertisements and marketing gimmicks.
Compare this figure with the sales one, it can be safely inferred that other factors like brand
awareness, price are enjoying more weight age in the purchase decision of customers. That is why
companies like L.G., Voltas etc. are beating them in sales due to low price and more penetration.

TABLE 9: COMPARATIVE RANKING OF AC COMPANIES

Parameters RANKS…1,2,3,4

29
After sales service L.G. Samsung, Voltas, Hitachi

Brand preference Voltas, Hitachi, Samsung, L.G.

Product features Hitachi, L.G, Samsung, Voltas

Margins Hitachi, Voltas, Samsung, L.G.

Order servicing L.G, Samsung, Voltas, Hitachi

Sales team visit L.G, , Hitachi, Voltas, Samsung

30
CHAPTER 4: LEARNING
OUTCOMES

31
LEARNING OUTCOMES

 On-the-job training helped me to know about the air conditioners and refrigerators industry
and in particular Hitachi Company. Hitachi is one of the top brands in India. This industry
truly inspired me to work upon this project.
 On-the-job training helped me to improve upon my inter-personal skills and has really
boosted up my confidence level to speak to the unknown customers and even to a higher
authority people from the society.
 How to handle stock and customer’s calls is also the major learning from the project.
 How to handle more than four or five customers at a time and to answer their query at the
same time taught me a lot regarding how to handle customers efficiently.
 Details of the product: This training gives me enough understanding regarding the
specifications of each and every product, which helped me a lot in comparing Hitachi with
other brand whenever asked by any of the customer.
 During my summer internship, it gives me many chances to learn various thinks regarding
consumer behavior in retail outlets while selling an AC .
 Summer internship gave me the opportunity to relate all my theoretical learning to the
practical aspects which was indeed great and fruitful.

32
 CHAPTER:5
RECOMMENDATIONS & FINDINGS

33
5.1 FINDINGS

After interacting with customers, it can be analyze that though Hitachi has improved in certain
areas, like top of the mind recall, distribution network and brand awareness still a lot of work needs
to be done.

 The major findings that emerged from the analysis were that Hitachi ranked second in brand
preference in case of air conditioners but ranks lower in after sales service, ordering and
sales team visit.

 Most of the customers who prefer Hitachi, they are mostly are premium customers.
 Customers prefer Hitachi as a brand because Hitachi gives some adding features compare
to its competitors.
 In Home appliances, industry service is the most important thing, because most of the
customers look for after sales services.
 Retailers as well as customer were also not satisfied with the sales force visit of Hitachi.
 After Sales Service of Hitachi is rate as poor by most of the customers.

5.2 RECOMMENDATIONS

 Supply side can be improve by keeping a proper capacity cushion especially in june to July
since 60-65% of sales occur in this period. Company need to make sure that there is no
dearth of supply, which will also help organization to shred its laid-back image.
 Attractive displays should be place at the retail outlets to create a distinction with other
brands. This will help Hitachi build strong brand equity at store level.
 The number of retail counters should be increase substantially to increase Hitachi’s
penetration.

34
 Company can organize a retailer meet regularly, which will increase their interaction with
company officials.
 The frequency of sales team, which visits to the outlets, should be increase substantially so
that things can be sort out on the spot.
 Proper margins and incentives should be giving, so that intermediaries can facilitate long-
term relations.
 Make Service/ franchisee networks stronger.
 Company should launch some lower price range product, which can be affordable by all.

35
LIMITATIONS & CONCLUSIONS

36
LIMITATIONS

 Duration of two months was not enough for an in-depth study of issues.
 Biases might have crept up on the part of the customers while giving answers.
 Absolute sanctity of data can be a cause of concern as many retailers did not ponder
much over giving points, ranks etc.
 The sample size for customers was small due to time constraint
 The analysis, findings and results are limited to Delhi market only that might not have
reflected true picture of entire Indian market.

37
CONCLUSION

Based on above findings you can conclude that Hitachi has improved itself in brand awareness
among retailers and customers but it is yet to surpass Voltas in that respect. Also sales team visits,
ordering and after sales are areas of concern that can cause great loss to the company in future.
Hitachi also need to redesign its marketing strategies and improve its pricing strategy for dealers
in order to make a success in India .If Hitachi improves the services & incentive scheme for
dealers, then there are good chances of a grand success, as the Indian air conditioner market is
growing very fast . Finally we can conclude that the success (or Sales) of Hitachi AC is dependent
on after sales service & incentives provided to dealers as they are the ones who push your brand.
Indian customers will not buy it just because it is their brand; but they expect value for money and
satisfaction.

38
ANNEXURE

39
 Survey

Research Survey on Air conditioner comparison

Name

………………………………………

Gender
• Male Female

Which brand do you prefer in terms of buying an air conditioner?

• Voltas
• Hitachi
• Samsung
• LG
• Daikin
• Whirlpool Others

What is your preferable price range?

• Rs15000-25000
• Rs25001-35000
• Rs35001-45000
• Rs45001 and above

Which type of AC you prefer to buy?

• Window
• Split
• Cube
• Others
What capacity of AC do you prefer?
• Less than 1 ton
• 1 ton
• 1.2 ton
• 1.5 ton

40
 • 2 ton
• More than 2 ton

How do you place an order?

• Online
• Offline
• Other
What is the key factor you look first while buying an AC?
• Features
• Price
• Design
• Color
• Service
• Others

How would you rate your brand compared to its nearest competitors on basis of
performance?
• Very poor
• Poor
• Satisfactory
• Good
• Excellent
What value added services does your brand gives?
• Services
• Product options
• Price range
• Extra features
• No idea

Does your brand give EMI option while buying an AC?

• Yes
• No

41
Does your brand give any extended warranty options?
• Yes
• No

42